{"id":177,"date":"2010-07-30T14:49:18","date_gmt":"2010-07-30T19:49:18","guid":{"rendered":"http:\/\/blogs.law.columbia.edu\/climatechange\/?p=177"},"modified":"2013-07-19T12:29:52","modified_gmt":"2013-07-19T17:29:52","slug":"home-star-energy-efficiency-provisions-in-senate-oil-spill-bill","status":"publish","type":"post","link":"https:\/\/blogs.law.columbia.edu\/climatechange\/2010\/07\/30\/home-star-energy-efficiency-provisions-in-senate-oil-spill-bill\/","title":{"rendered":"Home Star Energy Efficiency Provisions in Senate Oil Spill Bill"},"content":{"rendered":"
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by Jason James<\/p>\n

Last May, the House of Representatives passed the Home Star Energy Retrofit Act of 2010<\/a>, allocating $6 billion toward rebates for retrofits that increase a home\u2019s energy efficiency under the authority of the Department of Energy (DOE). Though Home Star enjoyed the support of twelve Republicans in the House, the U.S. Chamber of Commerce, and the National Association of Home Builders, it languished in the Senate<\/a>, like other energy legislation. However, the Senate\u2019s \u201coil spill bill,\u201d the Clean Energy Jobs and Oil Company Accountability Act of 2010<\/a>, includes a Home Star title that largely parallels the House\u2019s Home Star bill.<\/p>\n

This blog post is the third in a series analyzing the few sections of the recently-introduced oil spill bills addressing clean energy and energy efficiency. CCCL previously analyzed Division B of the Senate oil spill bill addressing natural gas and electric plug-in vehicles here<\/a>. This blog will examine the notable aspects of Division C of the bill \u2013 the Home Star title \u2013 and analyze the ways in which it differs from the already-passed House Home Star bill.<\/p>\n

The Senate\u2019s Home Star Retrofit Rebate Program<\/em><\/p>\n

Division C of the Senate oil spill response bill \u2013 titled \u201cClean Energy Jobs and Consumer Savings \u2013 contains the provisions establishing the Home Star program. Division C first defines its terms and criteria for eligibility of contractors (entities that install home retrofit materials), rebate aggregators (entities that process and deliver the rebates), and quality assurance providers (entities that confirm contractors\u2019 compliance). After these preliminary sections, the bill describes the rebate process in detail. Home Star consists of two sub-programs: Silver Star and Gold Star.<\/p>\n

Under Silver Star, in \u00a7 3007, rebates are awarded for a set of prescriptive retrofit standards. These prescriptive energy or water saving retrofits, include caulking and adding insulation; replacing windows, doors, and skylights; and replacing major household appliances. The prescriptive standards are very specific and technical. For example, \u00a7 3007(b)(9)(A)(i) requires a heating system be replaced with a natural gas or propane furnace with an AFUE rating, a measure of thermal efficiency, of 95 or greater.<\/p>\n

The value of the rebate for these retrofits is the lesser of (1) $3,000, (2) half of the total cost for all retrofits, or (3) the sum of specific values associated with each kind of retrofit listed in \u00a7 3007(d). For example, the furnace described above would qualify for a rebate of $1,500 under \u00a7 3007(d)(2)(c). If this was the only retrofit and its total cost was $5,000, then the rebate would be $1,500 under the third calculation method, because that is the lowest amount. However, if the total cost of the furnace was $2,000, then the rebate would be $1,000, under the second calculation method. If, in the course of a home retrofit, the homeowner decided to install a new furnace and several other components that totaled $10,000 in costs, and had a rebate value totaling $4,000 under the \u00a7 3007(d) list, then the actual rebate would be $3,000 under the first calculation method.<\/p>\n

Upon installing or selling materials covered by Silver Star, contractors and vendors apply for a rebate to rebate aggregators. The rebate aggregators then apply to DOE for the rebate and then supply contractors and vendors with funds acquired from DOE. Silver Star\u2019s section closes with quality assurance provisions meant to make sure the retrofits are legitimate and that consumers have an opportunity to complain if there are mistakes or wrongdoing in the retrofit or rebate process.<\/p>\n

In contrast to Silver Star\u2019s prescriptive approach, Gold Star\u2019s performance-based approach, found in \u00a7 3008, offers rebates for retrofits that achieve whole home energy or water savings. There are no references to individual energy or water-saving measures. Instead, under Gold Star, a homeowner would receive rebates of $3,000 for a 20% reduction in home energy consumption and an additional $1,000 for each additional 5% reduction up to the lesser of (1) $8,000 or (2) half the total retrofit cost. Similarly, a homeowner would receive $500 for a 20% reduction in water consumption and $100 for each additional 5% reduction up to the lesser of (1) $1,200 or (2) half the total retrofit cost.<\/p>\n

These percentage reductions are to be calculated using simulations of home energy and water consumption before and after the retrofit. Several acceptable simulation programs are stipulated, but the Secretary of Energy also has authority to establish an equivalent performance test. At a minimum, the test is to be capable of evaluating the impact of each prescriptive measure under Silver Star.\u00a0 The Gold Star section ends with language largely paralleling Silver Star\u2019s rebate processing and quality assurance scheme.<\/p>\n

Comparing the House\u2019s version of Home Star<\/em><\/p>\n

<\/em>The version of Home Star passed by the House differs from the version passed by the Senate in some ways. The most important contrasting provisions follow.\u00a0 In general, a comparison of the two bills reveals that while more materials and appliances are eligible for rebates under the Senate bill, the House bill allocates more money toward rebates in total. <\/em><\/p>\n

Differences between Senate and House Silver Star Programs<\/em><\/p>\n